Firsts fall a third since peak prices

How far has the price of each wine in the Liv-ex Fine
Wine 50 fallen since the market’s downturn? The chart below shows the
percentage loss for 2000-2008 vintages, comparing its highest Liv-ex Mid Price with its Liv-ex Mid Price for October 2012.

All but three of the peak prices occurred during the period
of December 2010–August 2011 (the exceptions were Haut Brion, Latour and
Margaux 2005, which saw their peaks in June 2008). Over 80% occurred from February
2011–June 2011, when the market had rocketed skywards.

The difference between the wines’ highest and current prices
is striking. The majority have seen drops of over 30% in value, with only
Mouton Rothschild 2000 showing an individual price drop of less than 20%. Lafite
has the greatest differences, with an average 40.6% drop between its most
expensive and current prices. Latour has seen the smallest change, but its
vintages are still on average 30.2% cheaper than they were just a year and a
half ago. The average drop across the board from peak Mid Price to now is
33.9%.

This may not bring cheer to those who purchased Lafite
Rothschild 2003 (LWIN 10118722003)in February 2011, or Mouton Rothschild 2008 (LWIN
10135442008) in June 2011. Nevertheless, it shows the relative
bargains that are currently available on Liv-ex for our trading members. In December 2010, for example,
the Liv-ex Mid Price for Lafite Rothschild 2006 (LWIN
10118722006)was £8,465 per 12×75 – it traded a few days ago
on Liv-ex for £5,155.

This blog is provided for informational purposes only and does not amount to financial advice or advice as to the value or likely future values of any of the wines it discusses. The opinions expressed are subject to change without notice. Neither Liv-ex Ltd nor any of the authors or editors accept any liability for the accuracy of its contents.